A regular dividend is the distribution on profits or retained earnings for a period.
All of the corporation's debts must be paid before it can pay liquidating dividends.
Liquidation dividend is a dividend paid to a dissolving corporation’s shareholders.
It is generally paid from the capital of the corporation, upon the decision to suspend all or part of its business operations.
This usually happens when shareholders believe that the company is no longer sustainable or profitable.
All of the firm's debts must be paid before it can pay liquidating dividends. A pro rata distribution of cash or property to stockholders as part of the dissolution of a business.